Washington: Congressman Shri Thanedar February 12 announced the introduction of the “Loans in our Neighborhoods (LIONS) Act,” a bill designed to amend the Small Business Act by increasing the maximum gross loan amount for section 7(a) loans.
The LIONS Act seeks to raise the limit from $5 million to $10 million, thereby providing greater financial support to small businesses. “By introducing the LIONS Act, we are taking a significant step to bolster the resources available to the small business community in Michigan and across the country,” said Congressman Thanedar. “This act is about ensuring that the financial needs of small businesses are adequately met, allowing them to continue driving our economy and creating jobs.”
The initiative is focused on strengthening the support system for small businesses, recognizing their critical role in local economies and communities.
The Small Business Administration’s (SBA) 7(a) Loan Program is a primary resource for helping small businesses. These loans serve various purposes, allowing small businesses to acquire or enhance properties, or to help cover daily business expenses, settle existing debts, purchase equipment or furnishings, alter business ownership, or a combination of these needs.
The Asian American Hotel Owners Association (AAHOA) has welcomed the move. “In 2024, the value of hotel properties is significantly higher than the current loan limits, leaving substantial collateral for higher loan amounts. AAHOA has been at the forefront of this issue for quite some time, and we applaud the introduction of the LIONS Act, introduced by Congressman Shri Thanedar. If passed into law, increasing SBA loan limits from $5M to $10M has the potential to constitute some of the most impactful legislative measures affecting hoteliers in the foreseeable future,” said AAHOA Chairman Bharat Patel.
